Malaysia And Singapore To Set Up Stock Market Trading Link

The Monetary Authority of Singapore
(MAS) and the Securities Commission Malaysia (SC) will work together to
facilitate the establishment of a stock market trading link between Bursa
Malaysia (BM) and Singapore Exchange (SGX) by the end of this year.

The trading link will allow investors
to trade and settle shares listed on each other’s stock market in a more
convenient and cost efficient manner. Retail investors notably will benefit
from such a link.

This initiative follows from the
ongoing efforts of the ASEAN Capital Markets Forum (ACMF) to deepen financial
connectivity across the region's capital markets. The bilateral link between BM
and SGX will extend beyond trading to cover post-trade arrangements like the
clearing and settlement of the stocks traded. In relation to this strategic
initiative, MAS and SC will set up cross-border supervisory and enforcement
arrangements, and work together with the two exchanges to operationalise the link.

Tan Sri Dato’ Seri Ranjit Ajit Singh,
SC Malaysia Chairman and also ACMF chairman, said “The establishment of this
trading link is an important step towards encouraging ASEAN investors to invest
in ASEAN. The ease of accessibility for investors will contribute towards
greater vibrancy in our markets. Once operationalised, this pilot initiative
can form the basis for future connectivity among ASEAN markets.”

Mr Lee Boon Ngiap, Assistant Managing
Director, MAS, said “The trading link will help lower trading costs for
investors and encourage greater cross-border investments in the stocks listed
on each other’s exchanges. This will improve the liquidity of both our stock
markets. I hope this initiative will in time expand to include the rest of the
stock exchanges in ASEAN.”

Background

Malaysia Prime Minister Dato’ Sri Mohd
Najib Tun Abdul Razak announced the establishment of a stock market trading
link between Bursa Malaysia and Singapore Exchange this morning at the World
Capital Market Symposium 2018. Please refer to his speech at the Office of the
Prime Minister’s website.

The ACMF was established under the
auspices of the ASEAN Finance Ministers in 2004 to serve as a forum for the
heads of securities regulators in the ASEAN region to discuss policy issues
relating to capital market development. More details can be found at the
ACMF’s website.